Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter's operations.
Machine setup, indirect materials |
|
$ 4,000 |
Inspections |
|
16,000 |
Tests |
|
4,000 |
Insurance, plant |
|
110,000 |
Engineering design |
|
140,000 |
Depreciation, machinery |
|
520,000 |
Machine setup, indirect labor |
|
20,000 |
Property taxes |
|
29,000 |
Oil, heating |
|
19,000 |
Electricity, plant lighting |
|
21,000 |
Engineering prototypes |
|
60,000 |
Depreciation, plant |
|
210,000 |
Electricity, machinery |
|
36,000 |
Machine maintenance wages |
|
19,000 |
Identify a cost driver that may be used to assign each cost pool to each line of snowmobiles